G-III Apparel Group reports 34 percent rise in Q1 net sales

REPORT_ G-III Apparel Group, for the quarter ended April 30, 2014,

reported that net sales increased by 34 percent to 366.2 million dollars from 272.6 million dollars in the year-ago period. Of this increase, 44.2 million dollars was the result of net sales by the G.H. Bass business that was acquired in November 2013.

The company's net income for the first quarter was 1.3 million dollars, or 0.06 dollars per diluted share, as compared to 1.1 million dollars, or 0.05 dollars per diluted share in the prior year's comparable period.

On the results, Morris Goldfarb, G-III's Chairman, Chief Executive Officer and President, said, “Our wholesale revenues were strong, exceeding our plan across a number of important categories. We finished the quarter with good momentum, clean inventories and a solid mix of growth opportunities. There were strong performances by a number of our Calvin Klein divisions, Vilebrequin and several of our dress businesses, all of which enabled us to exceed our forecast for the first quarter.”

The New York headquartered company also revised its prior guidance for the full fiscal 2015 year ending January 31, 2015. The company is now forecasting net sales of approximately 2.06 billion dollars and net income between 87.9 million dollars and 91.2 million dollars, or a range between 4.05 dollars and 4.20 dollars per diluted share, compared to its previous guidance of net sales of approximately 2.05 billion dollars and net income between 85.2 million dollars and 88.5 million dollars, or a range between 3.95 dollars and 4.10 dollars per diluted share. For the fiscal year ended January 31, 2014, net sales were 1.72 billion dollars and net income was 77.4 million dollars, or 3.71 dollars per diluted share.

The company is now projecting adjusted EBITDA for fiscal 2015 to increase between 16 percent and 19 percent, to between approximately 170.2 million dollars and 175.5 million dollars as compared to its previous guidance of between 166.3 million dollars and 171.5 million dollars. For its second fiscal quarter ending July 31, 2014, the company is forecasting net sales of approximately 392 million dollars compared to 304.2 million dollars in the comparable quarter last year. The company is also forecasting net income for the second fiscal quarter between 2.8 million dollars and 3.7 million dollars, or between 0.13 dollars and 0.17 dollars per diluted share, compared to net income of 3.6 million dollars, or 0.17 dollars per diluted share, in last year's second quarter.